Sometimes these are represented by interest groups (e.g. trade unions) and at other times their power is reflected in commercial relationships (e.g. suppliers).
The public is a ‘stakeholder’ to some degree and concerns might be represented by government action.
When setting up a business, it is important to identify who the stakeholders are …show more content…
Skills and career development.
A sense of doing sometime worthwhile.
Connected stakeholders having a contractual relationship with the organization. There are several groups of connected stakeholders.
Their prime interest is a restoration on their investment, whether in the short or long-term. As shareholders own the business, this is a commercial organization’s prime objective. Some shareholder are concerned with a corporation’s ethical performance, hence the growth of investment funds plan to avoid certain companies. Shareholders are now being asked to take a more involved interest in a company’s affaires.
Bankers are also interested in an organization’s overall condition, but from the point of view of the security of any loan they make. A bank is keen to minimize the risk of interest not being paid, or of its security being eroded. Banks provide finance in many different forms and may not require security for the advances they make. Overdrafts are often unsecured and are subject to higher interest rate consequence. Mortgages are secured on real property while finance extended by debt factors is secured on the customers’ trading accounts …show more content…
Large customers have significant power over prices and procedures. They ultimately decide what is produced, what quality is needed, what price charged and what development is needed. Failure to listen to customers will ultimately result in no sales and no market. The main ways that customers affect businesses through feedback, complains, suggestions, choosing whether or not to buy and filling out questionnaires. Customers are likely to form a large proportion of debtors: debtors as a stakeholder group will expect to be treated ethically and not subjected to undue or illegal pressure.
Suppliers like other creditors, will expect to be paid and will be interested in future business.
External stakeholder groups are the government, local authorities, pressure groups, the community, professional bodies are likely to have quite diverse objectives and have a varying ability to ensure that the company meets